How Checks are Altered
Alterations typically involve changing critical information such as:
- Payee name – replacing or modifying the intended recipient.
- Payment amount – increasing the value of the check to steal more funds.
- Date or check number – manipulating details to avoid detection.
Criminals may use chemicals, digital tools, or physical tampering to make these changes look legitimate, making them harder to detect with a quick glance.
Why Altered Checks are a Threat
Altered checks are dangerous because they exploit real checks issued by organizations, making them appear authentic to banks or recipients.
For governments, nonprofits, and businesses, falling victim to altered checks can result in direct financial loss, compliance issues, and reputational harm.
How to Prevent Altered Checks
Organizations can reduce the risk of altered checks by:
- Using fraud-resistant check stock with security features.
- Reconciling bank accounts frequently to catch suspicious activity.
- Implementing dual controls and segregation of duties for check issuance.
- Transitioning to electronic payment methods where possible.
What's important here?
Altered checks are genuine checks that have been fraudulently changed, often to the payee name or payment amount, to divert funds. Because they start as real checks, they can be harder to detect.
Strong controls and secure payment practices are essential to reduce this risk.
